Federal Aid Programs

The federal government awards financial aid to LIU Riverhead undergraduate and graduate students who demonstrate financial need according to a variety of economic criteria as determined by the United States Department of Education. The criteria include parents income and assets, family’s household size, and the number of family members (excluding parents) attending college. Benefits from all federal programs are subject to legislative changes. Recipients of federal programs must be U.S. citizens or permanent residents. All students wishing to apply for any federal assistance must file the Free Application for Federal Student Aid (FAFSA) or Renewal FAFSA annually.

Federal Pell Grants

Criteria

This federal grant program is designed to provide assistance to full- or part-time undergraduate students. Students and their families must meet certain financial criteria to qualify.

Application

Application is made by filing the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov.

Amount

Current awards range from approximately $602 to $5,550 a year. Actual awards vary from year to year based on current legislation and student's enrollment status.

Perkins Loans

Criteria

Full or part-time students may be eligible to borrow for their undergraduate study. Students must maintain satisfactory academic progress.

Application

Application is made by filing the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov. Eligibility is based on need and availability of funds. A Master Promissory Note is required of eligible borrowers.

Amount

Undergraduate students may borrow up to $15,000 for their studies. Annual Amounts are determined by the LIU Riverhead Financial Aid Office.

Repayment

Repayment begins six months after graduation or when a student stops attending school at least half time (6 credits per semester) at 5% interest. The loan has a special cancellation provision for students employed in specific service jobs.

William D. Ford Federal Direct Parent Loan Program (PLUS)

Parents of dependent matriculated students and degree-seeking graduate students enrolled at least half-time may participate. Students must maintain satisfactory academic progress.

Application

The PLUS borrower must complete an electronic PLUS Master Promissory Note. Loan proceeds are disbursed electronically to the student's tuition account. Any refund due is returned to the PLUS borrower.

Amount

Loans may not exceed the cost of attendance less financial aid. Parents and graduate students who have no adverse credit history as determined by the federal loan servicer may be eligible. The loan interest rate is approximately 7.9%. There is no aggregate loan limit. Borrowers are charged an origination fee and insurance fee which are deducted from the loan proceeds before disbursement.

Repayment

Repayment of PLUS loans begins 60 days after the loan is disbursed and may extend up to 30 years depending on amount borrowed. For loans disbursed after July 1, 2008, parents may take advantage of a new option which allows the repayment of the loan to take place six months after their student graduates or stops registering for at least six credits, whichever is first. Parents may choose to pay the interest while their student is in school, but the principal amount may now be deferred.

William D. Ford Federal Direct Loans (subsidized/unsubsidized)

Loans are available to undergraduate and graduate students. More detailed information is also available on the Federal Direct Loan Web site at https://studentloans.gov

Criteria

These subsidized and unsubsidized loans are available to full- and part-time matriculated undergraduate and graduate students making satisfactory academic progress in a degree granting program. Eligibility for these loans is determined by the Riverhead Financial Aid Office. The subsidized loan is based on financial need. The unsubsidized loan is not based on need.

Application

Application is made each year by filing the Free Application for Federal Student Aid (FAFSA) by March 1 at www.fafsa.ed.gov. A Direct Loan Electronic Master Promissory Note must be completed as a new Direct Loan borrower. New students must conduct an on-line entrance interview session before the loan proceeds will be disbursed to your My LIU Bursar account.

Amount

Eligible students may borrow up to the following annual loan limits.

Aggregate Limits: Total undergraduate: $31,000 for a dependent undergraduate, $57,500 for an independent undergraduate (and certain dependent students). Total undergraduate and graduate combined limit: $138,500. Loan proceeds are disbursed twice during the year and made co-payable to the student and college. Borrowers are charged an origination fee which is deducted from the loan proceeds.

Repayment

Repayment begins six months after the student ceases half-time enrollment (6 credits per semester) and may extend up to 25 years. Loans have a fixed interest rate. There is no interest accrual while the student is in college half-time for subsidized loans. Repayment of interest is required for unsubsidized loans while the student is in school or the interest may be capitalized.

Annual Subsidized & Unsubsidized Federal Direct Loan Limits Combined

*Also includes dependent students whose parents are not able to borrow a Federal PLUS Loan.

William D. Ford Federal Direct PLUS Graduate Loans

Criteria

Degree-seeking graduate students enrolled at least half-time may participate. Students must maintain satisfactory academic progress.

Application

The PLUS borrower must complete an electronic PLUS Master Promissory Note. Loan proceeds are disbursed electronically to the student's tuition account. Any refund due is returned to the PLUS borrower.

Amount

Loans may not exceed the cost of attendance less financial aid. Parents and graduate students who have no adverse credit history as determined by the federal loan servicer may be eligible. The loan interest rate is approximately 7.9%. There is no aggregate loan limit. Borrowers are charged an origination fee and insurance fee which are deducted from the loan proceeds before disbursement.

Repayment

Repayment of PLUS loans begins 60 days after the loan is disbursed and may extend up to 30 years depending on amount borrowed. For loans disbursed after July 1, 2008, parents may take advantage of a new option which allows the repayment of the loan to take place six months after their student graduates or stops registering for at least six credits, whichever is first. Parents may choose to pay the interest while their student is in school, but the principal amount may now be deferred.

Federal Veteran's Educational Benefits

Veterans, Reservists and National Guard members are encouraged to take full advantage of the G.I. Bill Benefits. Application forms, information and assistance in applying for benefits are available at all offices of the Department of Veterans Affairs. Forms can be downloaded from www.gibill.va.gov or you can call 1-888-442-4551.

You must first complete an Application for VA Education Benefits (VA form 22-1990) which determines the type of education benefit you are eligible to receive. Upon the VA's receipt of this form, you will then receive a certificate of eligibility from the VA which verifies your entitlement to the specific benefit you selected. A copy of this certificate should be sent to your school's Financial Aid Office. Your school will, in turn, complete the Enrollment Certification form, confirming your attendance and registration, and submit it to the appropriate Veterans Affairs Regional Processing Office.

Post-9/11 GI Bill

Veterans who served at least 90 days on active duty after September 10, 2001, are entitled to these new benefits. Those who served at least 36 months on active duty are entitled to the maximum benefit, while those who served less time are eligible for a percentage of the full benefit based on length of service. You must have received an honorable discharge to be eligible for the Post-9/11 GI Bill. The amount of financial assistance is dependent upon the state in which the particular institution or program is located. For further information, contact 1-888-442-4551 or www.gibill.va.gov . The tuition benefit covers up to the highest in-state undergraduate tuition at a public institution of higher learning.

Yellow Ribbon GI Education Enhancement Program

LIU Riverhead is a proud participant of the Yellow Ribbon Program: a provision of the Post-9/11 Veterans Educational Assistance Act of 2008. This program permits private degree granting institutions in the United States to voluntarily enter into an agreement with the VA to fund tuition expenses that exceed the tuition threshold of $17,500. Veterans who have served a minimum of 36 months of active duty after September 10, 2001 are eligible for the Yellow Ribbon Program. Visit the VA Web site at www.gibill.va.gov for more information on eligibility for the Yellow Ribbon Program.

Montgomery GI Bill – Chapter 30

The Montgomery GI Bill provides up to 36 months of education benefits. Individuals must have entered active duty after June 30, 1985, and completed at least two years continuous active service. Some service members may contribute up to an additional $600 to the GI Bill to receive increased monthly benefits. For an additional $600 contribution, service members may receive up to $5,400 in additional GI Bill benefits. The additional contribution must be made while on active duty. Generally, benefits are payable for 10 years following release from active duty.